UK house prices in first annual decline since November 2023 - Lloyds

UK house prices suffered an August decline, as the "market remains subdued", Lloyds reported on Monday.

UK house prices fell 0.4% on-year last month, the first annual decline since November 2023. In July, prices edged up 0.1%. On-month, house prices fell 0.2% in August. They had fallen 0.1% in July from June.

"The housing market has faced a more difficult backdrop in recent months, with the impact of global

events on inflation and borrowing costs creating greater economic uncertainty," Lloyds analyst Andrew

Asaam commented.

"We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices. While affordability remains a challenge, wages continue to grow and employment has held up better than many anticipated. This will help to support demand from those who need or want to move."

Asaam noted that "fewer homes are changing hands", as industry data showed mortgage approvals sit at the lowest level since the start of 2024.

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